Investors are under growing pressure to show that their portfolios support measurable progress on sustainability. Regulators expect decision-useful climate disclosures, clients want evidence of improvement, and the market increasingly rewards companies that manage climate risks well. PwC projects that sustainable investment assets will reach $33.9 trillion by 2026, reflecting how strongly financial performance and sustainability are converging.
Tracking this progress at scale is not straightforward. Companies disclose data in different formats, follow different frameworks, and publish information that varies in completeness and quality. The International Sustainability Standards Board (ISSB) has highlighted that inconsistent and incomparable disclosures remain one of the biggest challenges for investors seeking a clear view of sustainability performance.
These challenges make sustainability tracking an essential part of risk management and long-term value creation. Reliable insights help investors evaluate transition risks, stay ahead of regulatory requirements and sustainability trends, and direct capital toward companies making measurable improvements. Research from McKinsey shows that companies with strong environmental, social, and governance (ESG) performance experience 10–20% lower cost of capital, reinforcing why progress tracking matters for financial outcomes.
Consistent data gives investors a sharper view of portfolio-level trends and highlights where stewardship or engagement can drive meaningful change. Modern tools now make this work possible at scale by transforming fragmented disclosures into structured insights that support better decisions.
Common challenges in measuring portfolio sustainability
Investors want a clear way to understand how portfolio companies are performing on sustainability commitments. They need insight into emissions, climate targets, governance structures, and exposure to transition risks. Achieving this clarity is challenging without consistent frameworks and dependable ESG data.
One major challenge is the lack of standardized sustainability and climate reporting across markets. Companies report different metrics, follow different frameworks, and publish at different times. This makes it difficult to compare performance across asset classes and geographies.
Data quality is another barrier. Many companies still release incomplete or non-comparable disclosures. Investors often spend hours combing through long reports to extract information for their own evaluation criteria, which may differ significantly from what the company reports.
Manual analysis slows everything down. Benchmarking progress across dozens or hundreds of holdings in spreadsheets increases the risk of error and makes it harder to track change over time. Insights arrive late and often lack the consistency needed for decision-making.
For many institutions, evaluation frameworks are proprietary and require tailored analysis. Most off-the-shelf tools cannot support custom scoring models or nuanced assessments at scale.
Key metrics and frameworks for tracking sustainability progress
Investors can track sustainability progress more effectively when they focus on clear metrics and established frameworks. These help translate disclosures into decision-useful insights and support long-term planning.
ESG and climate-focused indicators
Core indicators help investors evaluate both company-level and portfolio-level sustainability performance. Many focus on:
- Carbon intensity and total emissions
- Science-based climate targets
- Renewable energy usage
- Board diversity and workforce representation
These metrics provide the most value when they are connected to financial outcomes and risk exposure. Emissions trends can shape exposure to future carbon pricing policies or transition risks. Governance and workforce indicators can influence operational resilience and long-term performance.
Portfolio-level performance measurement
Understanding how a single company is performing is only part of the picture. Investors also need a way to measure sustainability at the portfolio level.
Weighted averages help reveal overall carbon intensity or climate alignment. Benchmark comparisons show how holdings perform relative to peers or relevant indices. This helps investors understand whether performance is improving in line with expectations.
A unified view of data is essential for consistent evaluation. When metrics arrive in different formats or at different times, it becomes difficult to see whether the portfolio is progressing. Digital tools that consolidate and map data into a single structure help investors maintain clarity throughout the year.
How technology simplifies ESG tracking and analysis
Technology has reshaped how investors gather and evaluate sustainability data. Automation and AI help overcome inconsistent disclosures by extracting insights quickly from multiple sources. Instead of spending days reviewing PDFs, investors can access structured insights within minutes.
Automation reduces the manual work involved in tracking disclosures. It allows teams to refresh analyses more often, respond to new information quickly, and support more focused stewardship activities.
AI improves accuracy by applying the same evaluation criteria across all companies. This consistency strengthens the quality of insights and reduces the risk of missing important information.
These efficiencies become more important as sustainability reporting expands. As companies publish more information and reporting expectations evolve, manual analysis becomes harder to maintain. Technology helps investors scale their processes without sacrificing quality.
Tracking and improving sustainability performance with AI
AI and automation give investors a consistent way to analyze sustainability performance across every company in a portfolio. They bring structure to unstructured disclosures, reveal insights that are difficult to identify manually, and support ongoing monitoring.
Manifest Climate helps investors achieve this at scale. The platform analyzes thousands of disclosures, identifies gaps, and aligns insights with custom frameworks. This helps investors understand whether companies meet expectations and where further action is needed.
Translating complex data into custom ESG data and actionable insights
Custom evaluation frameworks are common among financial institutions. These frameworks often reflect unique priorities, risk models, or regulatory requirements. Each requires reliable, detailed data that aligns with specific criteria.
Manifest Climate uses AI to translate long disclosures into structured, decision-ready insights. The platform highlights which requirements are met, where disclosures fall short, and how each company compares to expectations. Source transparency ensures users always know where information comes from, increasing confidence in every assessment.
This helps investors understand how companies are progressing on climate commitments and where improvement is possible.
Benchmarking and continuous improvement
Benchmarking is essential for understanding relative performance. Manifest Climate allows investors to compare companies across sectors, peer groups, or standards. These comparisons highlight leaders, reveal laggards, and support targeted engagement strategies.
Sustainability tracking becomes more effective when treated as an ongoing process. Disclosures evolve, markets shift, and regulations change. Manifest Climate supports continuous improvement by updating analyses as new information becomes available, helping investors track progress over time.
| Case study: How KingSett Capital uses AI-driven insights to strengthen sustainability performance KingSett Capital is a private equity real estate firm with $18 billion in assets across office, retail, industrial, multi-family, hotel, and development properties. The team wanted a clearer view of how climate risks and sustainability performance could support long-term value, but gathering insights from public disclosures and peer reports took too much time. “We knew the information was out there to answer questions like: Are we leading? Are we lagging? Before Manifest Climate, we just didn’t have an easy way of finding it,” says Kit Milnes, Vice President of Sustainability and Resilience. Manifest Climate now helps KingSett benchmark against peers, industry standards, and emerging regulations in minutes. “It’s probably the most sophisticated benchmarking tool in the market. It allows you to quickly and accurately identify opportunities and risks across your portfolio,” Milnes explains. With AI-driven insights and a clearer view of performance, KingSett can validate strategies, spot new opportunities, and strengthen climate resilience across its portfolio. Read the full case study |
How to build a reliable process for sustainability tracking
A reliable tracking process begins with clear goals. Investors need to define what progress means for their portfolio, whether that includes emissions reductions, climate risk mitigation, or specific social outcomes. Clear goals shape data collection and guide evaluation frameworks.
Consolidating sustainability data is essential for clarity. Portfolio companies publish information in many formats, so bringing data together in one place helps investors maintain consistency. Automation reduces errors and saves time during this process.
Regular updates help investors stay ahead of changing expectations. AI-powered platforms like Manifest Climate make it possible to monitor disclosures continuously and respond quickly to new information. This supports proactive portfolio management rather than reactive reporting.
A strong process also improves communication with stakeholders by providing a clear picture of sustainability performance and progress.
Build confidence through better sustainability tracking
Consistent tracking helps investors make better decisions, strengthen accountability, and demonstrate progress with confidence. Clarity on sustainability performance supports long-term planning and helps investors navigate emerging risks.
Manifest Climate gives investors the insights they need to track progress across diverse portfolios. The platform turns complex disclosures into actionable intelligence and supports continuous improvement.Investors looking for a reliable, scalable way to track sustainability performance can book a free demo here.
